- SWFX market sentiment is 69% bullish
- 51% of pending orders in a 100-pip range to buy
- 55% of traders are bearish on the Yen
- Upcoming Events: US Crude Oil Inventories, New Home Sales
Contrary to expectations, the buck managed to break through a combination of the 100- and 200-hour SMAs as well as the weekly PP. Today the pair has to either confirm an existence of a new little ascending channel, or resume the downfall in accordance with the dominating downtrend.
The Labour Department revealed that the number of Americans filing for unemployment benefits fell to the lowest level in six months last week.
The report showed the initial jobless claims dropped to 232K in the week ended August 12, down from the prior week's 244K. Data provided a good sign for the Federal Reserve as the further tightening in the labour market could encourage the US economic growth.
Insignificant data from the US
Today, in essence, will be the third day in a row, which is absent on any significant data related either to the United States or Japan. The only data release that traders might take a look at is the US New Home Sales. Although they give a good perspective about the American housing market, they usually do not cause any notable volatility in the markets.
USD/JPY spikes above 200-hour SMA
The way the currency pair ended up previous trading day shows how it is important in certain cases to take into account the overall market sentiment.As it can be seen from the chart, yesterday the exchange rate has successfully managed to break through a combined resistance level set up by the 100- and 200-hour SMAs as well as the weekly PP.
Despite the 22-pip fall in the early morning, it seems that the rate is moving in a narrow short-term ascending channel.
If this assumption is true, the pair might get a chance to gradually surge to the area between 110.10 and 110.30 levels, which represents a location of the northern boundary of a senior descending channel.
Hourly chart
As it was expected, the buck tried to resume the surge, but this attempt was neutralized by the weekly PP located at the 109.59 level. If we assume that the long-term triangle pattern still exists, then the pair has to make one more attempt and continue to move in the upward direction. As the pair has no significant pressure from the top, such scenario seems quite possible.
Daily chart
SWFX market sentiment is bullish on Thursday, as the number of open positions is 69% long. Furthermore, 55% of pending orders are to buy the US Dollar, while 55% to sell the Yen.
OANDA clients are likewise bullish on the pair, as 67.50% of all open positions are long. Similar viewpoint is held by Saxo Bank clients with 65.45% long positions.